Fox News chief congressional correspondent Chad Pergram has the latest on House Republicans' plan to assist first-time home buyers on 'Special Report.'

Every few years, Washington comes up with a "creative" solution to an affordability problem that sounds helpful on the surface and quietly creates a much bigger problem underneath. 

The latest example? A proposal tied to President Donald Trump’s housing affordability agenda that would allow Americans to tap their 401(k) retirement savings to fund a down payment on a home. 

I understand the intent. Housing affordability is stretched. Home prices are near all-time highs. Mortgage rates are still hovering around 6%. First-time buyers feel locked out. COVID-19 buyers can’t afford to trade up. Politically, this all sounds like a win. 

Financially, it’s a terrible idea, in my view. This is the classic case of robbing Peter to pay Paul and, in this case, Peter is your future self.

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Trump's solution to the American dream is a nightmare for those who cash in part of their retirement to buy houses. (iStock)

Your 401(k) was designed for one purpose. To fund decades of income when you can no longer work. It was never meant to double as a short-term housing fund or a policy pressure valve when affordability gets........

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